The Hurtado & Associates Utility Insurance Program has been carefully designed to meet the needs of its varied members, with a wide range of coverages built-in or automatically included, and with the added ability to provide unusual coverages when they are needed. Throughout the decades that this program has existed it has been continuously improved as the needs of the group and the abilities of the insurance marketplace have evolved. Change, it seems, is the only constant in this business!

From the start, a primary goal of the program has been to include all of the coverages typically needed by utilities in the basic package of coverages provided to every policyholder. Accordingly, exposures common to all, or nearly all, participants have been addressed in the coverages that are made part of the basic package. However, there are some limitations built into the program’s coverages, primarily to target them to the levels and exposures that most utilities in the program would normally require. These limits are not the only options available, but that they are believed to meet nearly all of the usual and common exposures and needs. If your organization has an unusual or uncommon exposure situation that crops up, it may be necessary to make sure your insurance representative is advised of the situation so that proper steps can be taken in a timely manner. 

Here is the point where you may be beginning to wonder, “What is he talking about, and how does it affect me?” Well, as most of you have heard me say, experience is the best teacher, but other people’s experience is less costly. And, as it happens, someone has had an “experience” that everyone else can learn from.

Most utilities use their own equipment in the course of performing work on their lines. From time to time, many utilities may subcontract out certain specialty work or tasks requiring specialized equipment. Others may choose to purchase this type of equipment once the need arises. But, on certain occasions, it may appear to be preferable to simply rent a particular piece of equipment for their own workers to use, especially when it seems unlikely that the need will be more than a “one shot” issue, or rare enough that it doesn’t make any economic sense to buy one. Usually, this will be covered without any need to report it, but not always! 

The Hurtado & Associates standard insurance program provides participants with automatic coverage for any leased or rented Contractors’ Equipment. It is important to note that this coverage is limited to $100,000 for any one piece of equipment and carries a $1,000 deducible. As a practical matter, most rental equipment will not exceed that value, but exceptions can occur. If, for example, you have a need for something unusually valuable, such as  an exceptionally large ditching machine or a big track-bucket, and you don’t want to buy one for only occasional use, you may elect to rent it. Just make sure that if the equipment you rent is exceptionally valuable, that is, more than $100,000, that you pick up the phone and tell your local agent/insurance broker so that they can arrange for appropriate coverage. Yes, it will cost a bit of additional premium. While the program could provide higher standard limits, as everyone knows, there is no “free lunch,” and doing so would add costs to everyone’s premiums, even those who would never need this much rental coverage. 

So, here’s the heart of the lesson — the Hurtado & Associates program automatically offers $100,000 of coverage for rented equipment to all its members, enough for almost all normal situations. However, if you are going to be the exception to the rule, coverage is available, but you must contact your agent in order to arrange for it. Don’t get caught short!